US Senate votes to lift debt ceiling to avoid default

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The approval lifts the US federal debt ceiling, which stands at $31.4 trillion. Project goes to President Joe Biden’s sanction. Dollar banknotes bearfotos/Freepik The majority of the US Senate voted this Thursday (1st) to pass a bill that lifts the government’s debt ceiling. Approval takes place a few days before the deadline to avoid an unprecedented default by the US government. Share on WhatsApp Share on Telegram The project, the result of an agreement between Republicans and Democrats, suspends the so-called US federal debt ceiling — currently at US$ 31.4 trillion. The proposal had already been approved in the House with a score of 314 to 117. Then, the measure was sent to the Senate, being approved by 63 to 36. Now, the project goes to the sanction of President Joe Biden. After approval, Biden made a statement thanking the vote and said the bipartisan agreement was a great victory for the US economy. The president said he was “eager” to sign the law into law as soon as possible. The debate for approving the proposal was marked by an arm wrestling match between Democrats and Republicans and caused a race against time for the government. The Treasury Department warned it would be unable to pay all its bills after June 5 if Congress did not act to lift the cap. The Mechanism The United States has a mechanism created in 1917 to limit the amount of debt the government can incur during the fiscal year, which runs from October to September. This year, the limit of US$ 31.4 trillion was reached in January. With Senate and House approval, the debt ceiling is canceled at least until January 1, 2025, that is, after the US presidential election in November 2024. The bill also limits some government spending in the next two years, accelerates the permitting process for certain energy projects, recovers unspent pandemic funds, and expands work requirements for food aid programs for additional recipients. VIDEOS: most watched by g1

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